UK property group Segro has mounted a defense against a potential £12.6bn takeover by U.S. rival Prologis, arguing the offer severely undervalues its growth prospects. The London-listed warehouse and data center owner rejected an all-share bid from Prologis on June 23 that valued Segro at £9.25 per share.

Segro outlined its case to shareholders, projecting earnings per share of 50 pence by 2030, up from 36.6 pence currently. Commercial property firm CBRE has provided a valuation of approximately £13 per share for Segro. Chief Executive David Sleath stated the Prologis bid would transfer significant value from Segro shareholders to Prologis at an inappropriate price.

While Segro's net asset value per share fell to £9.05, the company asserts this metric does not account for future value creation from its logistics and data center pipeline. Data center net rental income is expected to increase to 30% by 2035, from 7% today. Prologis, which has a history of large acquisitions including Duke Realty for $23 billion, believes its capital and expertise are needed to unlock Segro's full potential. Prologis must make a firm offer or withdraw by July 22.